Money In Manx Banks At Risk ?

[Lxxx]

This reminds me of discussions we had some time ago - how large a banking sector is it wise for a country to have?

 

Cameron and Ding Dong both seem to believe that it is a great idea to continue to grow the financial sector. But if that sector is increasing its levels of risk it is also increasingly growing the level of risk for the wider economy if or when it goes wrong. At best it is a gambler's strategy that if you bet on red the ball will land on red.

 

It looked great in the early noughties but as the balloon has become more and more inflated the lack of a productive wealth generating economic base is more and more of an issue.

 

Unfortunately it doesn't look like we have much choice. Manufacturing has been sent east due to lower costs, innovation has moved eastwards as well due to the increased budgets fuelled by growing economies and we've ran out of fossil fuels to export. Throw in a soon to collapse economy and things don't look too rosy for the UK in the coming years.

[Lxxx]

He might have a character that some find annoying but he is, and has been for years, bang on the money with what's happening financially in the world. By watching one episode of the Keiser Report a week you'll learn infinitely more than by watching the mainstream news channels and reading the mainstream press every single day.

He might have a character that some find annoying but he is, and has been for years, bang on the money with what's happening financially in the world. By watching one episode of the Keiser Report a week you'll learn infinitely more than by watching the mainstream news channels and reading the mainstream press every single day.

I might just do that as it certainly seemed insightful

I might also look at removing what little I have in my banks, but what do you do with it? Do you keep it in the house, put it in a safe bank (if there is one) where you know if the brown stuff hits the fan in the banking world, at least you can get your money back.

What is the best thing to do with my money? Buy gold, silver, £1 coins, keep £50 notes?

 

There are plenty of opinions on what the best course of action is, I've made it clear on here what mine is. However the best preparation you can take is of the mental kind. Knowing we're in for an inevitable collapse (the only variant is the timescale) is the best preparation you can have. Most of the population are still blissfully unaware, so you'll have a headstart on the rest when the sh*t really hits the fan.

[manshimajin]

Unfortunately it doesn't look like we have much choice. Manufacturing has been sent east due to lower costs, innovation has moved eastwards as well due to the increased budgets fuelled by growing economies and we've ran out of fossil fuels to export. Throw in a soon to collapse economy and things don't look too rosy for the UK in the coming years.

Your analysis still does not make gambling on red a great strategy. German manufacturing has not all gone east. Innovation itself has not gone eastwards either - but the production from it may have to an extent. The UK has not run out of fossil fuels but needs to do something to make them less polluting if it were to recommence extraction.

 

The COLON has created a near myth that it is the only option so successive governments become scared of controlling its size and the financial risk of over-investing in the finance sector grows and grows. And if the banks don't invest in SMEs this just gets worse as reliance on the 'service sector' becomes the apparent only option. But who pays for the 'service sector' as it is not a wealth generator in its own right?

 

IF the UK had had a more conservative and regulated approach to the growth of the COLON and the finance sector generally the UK would not have been in the mess it is right now which in turn would have allowed for investment in the real wealth generating sectors. As it is money that could have been used productively now has to go into simply keeping the banks balance sheets shored up.

[Lxxx]

Unfortunately it doesn't look like we have much choice. Manufacturing has been sent east due to lower costs, innovation has moved eastwards as well due to the increased budgets fuelled by growing economies and we've ran out of fossil fuels to export. Throw in a soon to collapse economy and things don't look too rosy for the UK in the coming years.

Your analysis still does not make gambling on red a great strategy. German manufacturing has not all gone east. Innovation itself has not gone eastwards either - but the production from it may have to an extent. The UK has not run out of fossil fuels but needs to do something to make them less polluting if it were to recommence extraction.

 

The COLON has created a near myth that it is the only option so successive governments become scared of controlling its size and the financial risk of over-investing in the finance sector grows and grows. And if the banks don't invest in SMEs this just gets worse as reliance on the 'service sector' becomes the apparent only option. But who pays for the 'service sector' as it is not a wealth generator in its own right?

 

IF the UK had had a more conservative and regulated approach to the growth of the COLON and the finance sector generally the UK would not have been in the mess it is right now which in turn would have allowed for investment in the real wealth generating sectors. As it is money that could have been used productively now has to go into simply keeping the banks balance sheets shored up.

 

 

I completely agree, but successive governments as you rightly point out (and their true paymasters) have put the City of London and their requirements at the forefront of our whole economic policy. In that time the finance sector has gone from being a service industry to a high stakes gambling casino, with no real benefit to anyone but the people in the inner sanctum of it who have gone from being wealthy to obscenely wealthy. This has left the world on the brink of collapse due to their new 'initiatives' like derivatives and credit default swaps, which are nothing more than weapons of mass financial destruction, designed to make sure the big banks have a no-lose scenario from their daily high frequency trading.